Sports Direct, the retail group controlled by Newcastle United owner Mike Ashley, said it was on course to hit its controversial "super stretch" financial targets after being boosted by the Olympics.

The company said sales in the nine weeks to 30 September had risen to £402.7m, up from £341.3m a year ago, meaning it could hit its target of underlying pre-tax profits of £270m which would have triggered a £25m bonus for Ashley.

But shareholders at the company's annual meeting last month refused to support the terms of the bonus scheme and Ashley will not receive a bonus. Sports Direct said it reported progress towards the target because it remained a target for the business.

Dave Forsey, the chief executive, said: "The group has continued to deliver strong growth through the second quarter, especially within the UK sports retail division where sales and margins benefited from the London Olympics and an excellent 'back to school' period. Since the end of September trading has remained equally strong and the board is therefore confident of reaching the full-year targeted 'super stretch' underlying EBITDA [earnings before interest tax, depreciation and amortisation] of £270m."

However, staff incentives as a whole are said to be one reason for the retailer's recent stellar performance and more than 2,000 employees were awarded an average of 5,000 shares last summer – while they will get a further 12,000 next summer if they are still employed at Sports Direct – for hitting financial targets. A new scheme involving around 3,000 employees has also begun and they will be awarded an average of 2,500 shares in 2015 – plus a further 7,500 in 2017 – if the company can report EBITDA of £250m in 2013, £260m in 2014 and £300m in 2015.

The renaissance of the company – which was widely slated by the City when it first floated at 300p a share in 2007 – was illustrated further in October, when rival JJB went into administration and Sports Direct bought 20 stores and nearly all the stock from its rival.

Matthew McEachran, a retail analyst at N+1 Singer, described the trading announcement as an "excellent update" and said: "Sports Direct's strategy in relation to JJB Sports has played out extremely well, meaning there will be a continuing boost to sales from [market] share transfer over the next 12 months."

Gross profit in the period rose 21.7% to £167.4m, with the firm adding that trading since September had remained strong.

Shares in the firm closed down slightly at just under 400p, but up more than 70% on a year ago and valuing the business at around £2.5bn.